GENERAL MEETING DRAFT - Bankier.pl

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>> Report on Operations
Private Banking
Private Banking Italy reported around €80 billion in total financial assets. Ordinary financial assets
increased by 7.9% on a yearly basis to €64 billion, driven by around €2.8 billion ordinary net inflows and
around €1.9 billion increase from positive performance. Ordinary net inflows were also driven by the €2.6
billion increase in the administered component. Operating profit amounted to around €122 million, a
decrease of approximately 37% over the year. Revenues declined around 17% over the year: interest
income fell by approximately 20% and net commissions by approximately 15%. Though operating costs
were reduced by around 2%, in part attributable to specific containment actions, the cost/income ratio
increased from 58.2% in 2008 to 68.2%. UniCredit Private Banking reported around €64 million in net
profit for the year.
Private Banking Germany reported around €27 billion in total financial assets at year-end 2009; the
ordinary component amounted to around €24 billion, up 3.1% from a year earlier. Ordinary net inflows
were -€0.7 billion, entirely due to net outflows in assets under custody (AuC). However, the company
reported net inflows of €0.1 billion in the fourth quarter, driven by deposits. Looking at the profit and loss
account, total revenues declined around 19% on the year, as commissions dropped 22% and interest
income was down 20%. Operating costs were reduced by around 6%, including approximately 6%
decrease in payroll costs and around 7% in other administrative costs. Operating profit amounted to
around €59 million, around 40% decrease compared to 2008.
Private Banking Austria reported around €15 billion in ordinary financial assets at year-end 2009, a
17.2% increase over the year; excluding the transfer of customers from/to the retail business areas, the
increase was 3.5%. Positive performance contributed around €0.8 billion to the increase, while ordinary
net inflows were -€0.4 billion, mainly due to net outflows on deposits. Operating profit amounted to
around €32 million, a 2% decrease on the year. Revenues were almost stable (-0.4%), but were down
around 6% excluding the customer transfer, and operating costs saw a light increase of 0.3%, but were
down around 4% net of the transfer.
Private Banking International reported around €18 billion in total financial assets at year-end 2009,
including €5.8 billion in ordinary assets. Ordinary financial assets increased 3.5% over the year, driven by
ordinary net inflows, amounting to €0.1 billion, while positive market performance added another €0.1
billion. Operating profit amounted to approximately €36 million, down around 16% from approximately
€43 million in 2008, due to a decrease of approximately 12% in revenues across all components, only
partially offset by a reduction of approximately 7% in operating costs, the result of careful containment
policies and the first positive effects of the integration of the Luxembourg companies.
Among the key projects in 2009:
� the setting up and implementation of a new European service model for private banking (customer
service model or CSM) based on three pillars: i) European coverage and coordination combined
with regional roots and proximity to customers; ii) comprehensive 360 degree approach in
customer relations, and iii) focus on portfolio performance with appropriate balance between risk
and return;
� at UniCredit, the operating start-up of Global Investment Services and Product & Advisory
departments, set up in late 2008, directly reporting to the head of the business unit, and
integrating some of the respective local departments. Consistently with the objectives of the
European service model, these departments pursue their mission of implementing common
investment and asset allocation strategies, as well as the spreading of best practices allowing for
the development of a product platform suitable to satisfy customers’ dynamic needs and capable
of combining greater transparency and simplicity with increasingly global but integrated needs;
� the complete reorganization of the business in Austria, including: the sale of several Asset
Management GmbH businesses to Pioneer Investments Austria Gmbh in June; the merger of the
remaining businesses and those of Bank Privat into Bank Austria on 1 October; start-up of the
process to transfer retail customers with assets exceeding €500,000 to the private banking
business unit and at the same time the transfer of private customers under that threshold to the
retail business area (process should be concluded in the first quarter 2010). These decisions led
to the setting up of a business model similar to the one already existing in Germany (private
segment within a universal bank such as Bank Austria), with management of all aspects of the